India cash rates rise; repo bids with RBI climb

MUMBAI: Indian cash rates rose on Tuesday, as cash supply remained tight and demand for funds strong in the first week of the two-week reporting cycle. Banks’ borrowings from the Reserve Bank of India’s repo auction under the daily liquidity adjustment facility rose to 1.55 trillion rupees ($30.39 billion) from Monday’s 1.48 trillion. It is also the highest cash injection by the RBI in a single session since Dec 23 when banks borrowed 1.73 trillion, according to Thomson Reuters data. At 12:18 pm, the one-day cash rate was 9.35/9.40 per cent, up from Monday’s close of 8.60/8.70 per cent and most traders expect the rate to hover above nine per cent for rest of the session. “There is a lot of requirement (of funds) and...

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